Care Enterprises Inc

Almost exactly two years after seeking protection from the U.S. Bankruptcy Court, Care Enterprises Inc. has received court approval of a reorganization plan that would enable the Tustin-based nursing-home company to emerge from Chapter 11 by the end of the year. The plan, approved March 29 by Judge Arthur Greenwald, is scheduled to take effect Dec. 31.

Shareholders sold almost 4.7 million shares of Regency Health Services' common stock in wild trading Wednesday as the price fell almost 40% on word that the nursing home operator's profits will likely be far short of earlier forecasts. Only last-minute stock buyback pledges by Regency's chairman and its largest shareholder kept the price from plummeting lower. At one point during the day, Regency shares were trading at $7.625, down from Tuesday's closing price of $14.125.

Care Enterprises Inc., a health care provider, reported a profit of $5 million, or 38 cents a share, for 1993, compared to $5.7 million, or 49 cents a share, for 1992. Revenue increased 4%, to $200.4 million from $192 million in 1992. For the fourth quarter, profit totaled $1.1 million, or 8 cents a share, which included a charge of $1.1 million related to its share appreciation rights plan. That compares to profit of $3.2 million, or 27 cents a share, for the like 1992 period.

After operating nearly three years under the protection of the U.S. Bankruptcy Court, Care Enterprises Inc. will emerge today as a much smaller but more financially sound nursing home operator, company officials said Monday. "What emerges tomorrow is a new Care Enterprises. Its assets have been restructured, its capital structure overhauled. It is issuing new stock and has a new board of directors," said Douglas Drumwright, Care's chief executive.

Care Enterprises Inc.'s largest shareholder has agreed to provide $4 million in working capital to the nursing home chain to ease its cash crunch as it emerges from bankruptcy. A group of New York investors that holds a 13.7% stake in Tustin-based Care Enterprises will provide the money to let Care management "breathe a little easier," said Doug Drumwright, Care's chief executive. The investment was disclosed Thursday in a filing with the Securities and Exchange Commission.

Care Enterprises Inc. reported third-quarter earnings of $479,000, an improvement over a year-earlier loss of $254,000 when the company was in Chapter 11 bankruptcy proceedings. For the first nine months, the Tustin nursing-home operator earned $805,000, or 9 cents a share, contrasted with a loss of $962,000, or 8 cents a share, last year. Care Enterprises cautioned that year-to-year per-share figures aren't directly comparable because the company had 11.

Care Enterprises Inc., showing signs of recovering from a bankruptcy reorganization a year ago, reported a profit of $2.2 million in 1991. The Tustin-based nursing home operator has pared down its size, installed new management and sold much of its stock to creditors. Gary Massimino, executive vice president and chief financial officer, said the company was very pleased with the 1991 profits.

Care Enterprises Inc., a health care provider, reported a profit of $5 million, or 38 cents a share, for 1993, compared to $5.7 million, or 49 cents a share, for 1992. Revenue increased 4%, to $200.4 million from $192 million in 1992. For the fourth quarter, profit totaled $1.1 million, or 8 cents a share, which included a charge of $1.1 million related to its share appreciation rights plan. That compares to profit of $3.2 million, or 27 cents a share, for the like 1992 period.

Regency Health Services Inc.said Thursday that its board of directors has set March 3 as the record date for stockholders to vote on a merger with Care Enterprises. Regency plans to hold a special meeting of stockholders at 9 a.m. April 4 at the Sheraton Hotel Newport Beach. "We anticipate mailing the proxy material March 7 and (shareholders) either can mail in their vote or they can show up at the meeting and cast their vote then," according to a Regency spokeswoman. Regency announced Dec.

Regency Health Services Inc. on Tuesday said it signed a merger agreement with Care Enterprises Inc. Each Care Enterprises common share will be converted into 0.71 of a Regency common share. Based on Monday's closing price of $12.625 for Regency stock, the transaction is valued at around $120 million. Regency, based in Newport Beach, operates 44 health-care facilities in California. Care Enterprises, based in Tustin, operates 51 nursing homes and rehabilitation centers in California and Ohio.

Southmark Corp., the Dallas-based financial services and real estate conglomerate, said Tuesday that it wants to acquire control of troubled Care Enterprises Inc. and has agreed to buy the voting rights of a substantial block of the nursing home operator's stock. Care Enterprises, which has been facing stiff financial problems and managerial turmoil for the last several months, had no immediate response.